Use the information Above to answer this question<br/>What is the current ratio?
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Correct Answer: Option A
Explanation:
Current assets = Stock + Debtors + Bank + Cash<br/>= 1,250 + 480 + 3,000 + 20 = 4,750.<br/>Current liabilities = Creditors + Accruals<br/>= 1,000 + 187.50 = 1,187.50.<br/>Current ratio = Current assets / Current liabilities<br/>= 4,750 / 1,187.50 = 4.<br/>So the current ratio is 4:1.
Current assets = Stock + Debtors + Bank + Cash<br/>= 1,250 + 480 + 3,000 + 20 = 4,750.<br/>Current liabilities = Creditors + Accruals<br/>= 1,000 + 187.50 = 1,187.50.<br/>Current ratio = Current assets / Current liabilities<br/>= 4,750 / 1,187.50 = 4.<br/>So the current ratio is 4:1.